Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Q2 2022 Earnings Presentation
43 slides from Ooredoo Q.p.s.c's earnings presentation, Jul 28, 2022
Slide 1: Ooredoo Group Q2 2022 Results
Ooredoo Group Q2 2022 Results 28 July 2022
Slide 2: Disclaimer
Disclaimer • Ooredoo (parent company Ooredoo Q.P.S.C.) and the group of companies which it forms part of (“Ooredoo Group”) cautions investors that certain statements contained in this document state Ooredoo Group management's intentions, hopes, beliefs, expectations, or predictions of the future and
Slide 3: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information Ooredoo Q2 2022 Investor Presentation | 28 July 2022 | 3
Slide 4: Ooredoo Vision: Enriching People's Digital Lives
Vision Ooredoo Vision: Enriching People’s Digital Lives Strategic Pillars Value-creating Excellence in Strengthen Evolve the People portfolio Customer Experience the core core Deliver SEAMLESS , CONSISTENT and DIFFERENTIATED customer experience “Voice of Customer” CX Performance measured Culture Tra
Slide 5: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information Ooredoo Q2 2022 Investor Presentation | 28 July 2022 | 5
Slide 6: Group Results: Key Highlights
Overview Results review Operations review Additional information Group Results Key Highlights normalized proforma 1H 2022 Good start into the year continued in Q2 First half 2022 revenue stood Group EBITDA for H1 2022 was In Indonesia, IOH integration Group Net Profit at QAR 11billion, an increase Q
Slide 7: ORDS – Financial Achievements H1 2022 YoY - Proforma
ORDS – Financial Achievements H1 2022 YoY - Proforma* Revenue: EBITDA: EBITDA Margin: Capex Intensity: +4% yoy +2% yoy -1 ppt -2ppt QR 11bn QR 4.5bn 41% 9% Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers - 0.3ppt - 6% +10% +43% 55mn 1.3x QR 3.6bn QR 1.3bn *Post the IOH merger in Indonesia the
Slide 8: ORDS – Financial Achievements H1 2022 YoY
ORDS – Financial Achievements H1 2022 YoY Revenue: EBITDA: EBITDA Margin: Capex Intensity: -24% -25% -1% PPT -5ppt QR QR 11bn 4.8bn 43% 9% Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers -14% QR QR - 0.3ppt -54% 3.8bn 1.5bn 1.3x 55mn Ooredoo Q2 2022 Investor Presentation | 28 July 2022 | 8
Slide 9: ORDS – Financial Achievements Q2 2022 YoY - Proforma
ORDS – Financial Achievements Q2 2022 YoY - Proforma* Revenue: EBITDA: EBITDA Margin: Capex Intensity: +3% +2% Unchanged -3ppt QR QR 5.5bn 2.2bn 40% 11% Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers +13% +37% - 0.3ppt -6% QR QR 1.6bn 1.3x 55mn 649mn *Post the IOH merger in Indonesia the acc
Slide 10: ORDS – Financial Achievements Q2 2022 YoY
ORDS – Financial Achievements Q2 2022 YoY Revenue: EBITDA: EBITDA Margin: Capex Intensity: -24% -23% +1 ppt -4ppt QR QR 45% 11% 5.5bn 2.5bn Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers -10% - 0.3ppt -54% QR 1.9bn QR 816mn 1.3x 55mn Ooredoo Q2 2022 Investor Presentation | 28 July 2022 | 10
Slide 11: Proforma Revenue
Proforma Revenue* Group Revenue H1 -22 (QAR mn) Q2 -22 YoY Change , Amount (QAR mn) and % 14,509 +4% 3% 163 14 10 4 2 10,689 11,086 41 22 10% 4% 0% -5% 4% 2% 5,541 58 18% -9% 74 (26) (37) 5,379 12% Q2-21 Kuwait Others Myanmar Oman Iraq Maldives Palestine Qatar Algeria Tunisia Group Q2-22 1H-21 H1- 1
Slide 12: Proforma EBITDA
Proforma EBITDA* Group EBITDA H1 -22 (QAR mn) % Q2- 22 YoY Change Amount (QAR mn) and % EBITDA Margin 6,440 2% +2% 49 11 2 25 22 6% -3% 21% -11% 4,473 4,555 33 (6) -6% 8% (23) 49 17% -4% 2,234 (23) 2,185 86% (40) 44% 42% 41% Q2-21 Myanmar Kuwait Oman Others** Maldives Palestine Tunisia Algeria Iraq
Slide 13: Net Profit H1 – 2022 Reported to Normalized
Net Profit H1 – 2022 Reported to Normalized H1 -22 NP Reported to H1-22 Normalized H1 -21 NP Reported to H1-21 Normalized + 1,886 -148 97 545 1,475 1,326 2,341 (245) 930 (1,000) H1 -22 FX impact Data Center H1 -22 (956) Reported sale gain Normalized H1 -21 Impairment FX impact Tower H1 -21 Reported
Slide 14: Net Profit H1 - 2022
Net Profit H1 - 2022 H1 -22 Net Profit Attributable to Ooredoo shareholders (QARmn) +43% 1,475 1,326 930 -956 H1 2021 Reported H1 2022 Reported H1 2021 Normalized H1 2022 Normalized proforma Proforma • Group reported Net Profit turned positive reaching to QAR 1.48Bn • Normalized proforma Net Profit
Slide 15: Net Profit Q2 – 2022 Reported to Normalized
Net Profit Q2 – 2022 Reported to Normalized Q2 -22 NP Reported to Q2-22 Normalized Q2 -21 NP Reported to Q2-21 Normalized +1,622 -166 79 281 816 2,341 649 472 (245) (1,000) Q2 -22 FX impact Data Center Q2 -22 (1,149) Reported sale gain Normalized Q2 -21 Impairment FX impact Tower Q2 -21 Reported los
Slide 16: Net Profit Q2- 2022
Net Profit Q2- 2022 Q2-22 Net Profit Attributable to Ooredoo shareholders (QARmn) +37% 816 649 472 -1,149 Q2 2021 Reported Q2 2022 Reported Q2 2021 Normalized Q2 2022 Normalized Proforma Proforma • Group Net Profit turned positive reaching to QAR 816m • Normalized proforma Net Profit excluding, FX i
Slide 17: Proforma Capex
Proforma Capex* Group Capex H1 - 2022 (QAR mn) & Capex / Revenue % H1 - 2022 yoy (Change %) 1,971 PAL 136% ALG 81% -21% TUN -10% 1,219 QAT -12% 965 MYN -19% MAL -38% 14% IRA -40% 11% 9% OMA -44% KUW -44% 1H-21 H1- 1H-22 Capex Breakdown (H1-22) 21Proforma • Capex lower in H1, 2022 yoy, FY expectation
Slide 18: Proforma Free Cash Flow
Proforma Free Cash Flow* (FCF: EBITDA – Capex ) Group FCF H1 22 (QAR mn) Q2- 2022 YoY Change AAmount (QAR mn) and % 4,469 +10% +13% 185 3,590 22 12 11 3,254 23 51 (4) 1,640 52 (21) (50) 90 1,455 Q2-21 Iraq Oman Myanmar Kuwait Others** Maldives Qatar Palestine Tunisia Algeria Group Q2-22 1H-21 H1- 1H
Slide 19: Customers
Customers Total Customers H1-22 (mn) YoY Change (000) -6% -3,203 118.3 1,832 324 211 150 72 66 12 57,994 (339) -6% 54,791 58.0 (5,532) 54.8 Group Iraq Kuwait Algeria Qatar Oman Palestine Maldives Tunisia Myanmar Group Q2-22 Q2 2021 1H-21 1H-21 1H-22 excluding Indonesia Customers Breakdown (H1-22) Su
Slide 20: Group Results: 2022 performance summary and guidance
Group Results 2022 performance summary (Proforma) & Guidance for 2022 % Change Group Financials H1 2022 2022 Full Year H1 2022 /H1 2021 (QAR bn) Proforma Guidance over 2021 Proforma* Revenue 11 +4% -2% to +2% EBITDA 4.5 +2% -3% to +1% CAPEX 0.96 -21% 2.75bn to 3.25bn Summary • Proforma H1 Revenue an
Slide 21: Indosat Ooredoo Hutchinson H1 2022
Indosat Ooredoo Hutchinson H1 2022 The integration between Indosat Ooredoo and Hutchison in Indonesia is progressing well, with the merged entity, Indosat Ooredoo Hutchison, on track to hit its targets outlined at the start of 2022. INVITATION PT. Indosat Tbk. First Half 2022 Results Conference Call
Slide 22: Debt Profile
Debt Profile Fixed vs Floating rate debt portion (QAR m*) Strong investment grade rating Repayment Schedule (QAR m*) • Net debt/ EBITDA ratio of 1.3x, below current board guidance of 1.5x to 2.5x 2,571 14% • Strong liquidity position (combination of Cash and RCFs ) • Balanced and long maturity profi
Slide 23: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information Ooredoo Q2 2022 Investor Presentation | 28 July 2022 | 23
Slide 24: Qatar
Qatar Quarterly Trend (QAR mn) Revenue Revenue EBITDA EBITDA Margin EBITDA 0% +2 YTD - 22 YTD - 22 2,038 3,786 1,930 1,897 1,752 1,887 1,899 3% -1% yoy yoy 52% 54% 52% 50% 46% QAR mn QAR mn 993 950 943 977 953 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed 1,900 1,572 +2% +7% • H1 2022 Revenue grew by 3
Slide 25: Kuwait
Kuwait Quarterly Trend (KD mn) Revenue Revenue EBITDA EBITDA Margin EBITDA 14% +7 YTD - 22 YTD - 22 58 59 55 1,399 420 52 53 13% 17% yoy yoy 30% 31% 29% 31% 27% QAR mn QAR mn 16 17 16 19 15 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed • Strong growth in H1 2022, revenue up by 13% yoy, • Ooredoo the fi
Slide 26: Algeria
Algeria Quarterly Trend (DZD bn) Revenue Revenue EBITDA EBITDA Margin EBITDA 4% YTD - 22 YTD - 22 +1 1,085 397 22 22 21 21 21 -3% -1% yoy yoy QAR mn QAR mn 37% 36% 38% 35% 31% 8 8 7 8 8 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed • In local currency, revenue and EBITDA increased by 4% and 6% yoy, res
Slide 27: Tunisia
Tunisia Quarterly Trend (TND mn) Revenue Revenue EBITDA EBITDA Margin EBITDA 0% +2 YTD - 22 YTD - 22 324 315 741 324 301 303 303 -6% -2% yoy yoy QAR mn QAR mn 42% 43% 43% 44% 28% 126 140 130 135 90 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed 52 • In local currency, revenue and EBITDA increased by 2%
Slide 28: Iraq
Iraq Quarterly Trend (IQD bn) Revenue Revenue EBITDA EBITDA Margin EBITDA 1% YTD - 22 YTD - 22 +5 427 1,746 755 366 358 350 3% -3% 346 yoy yoy 47% 48% 44% 43% 43% QAR mn QAR mn 204 161 160 155 151 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed • Revenue increased year on year 3% in H1 2022 driven by dat
Slide 29: Oman
Oman Quarterly Trend (OMR mn) Revenue Revenue EBITDA EBITDA Margin EBITDA 4% +2 YTD - 22 YTD - 22 65 64 62 62 1,222 650 57 2% 5% yoy yoy 52% 53% 52% 52% 54% QAR mn QAR mn 32 30 33 34 35 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed • Revenue year on year increased by 2% in H1 2022 , growth in wholesale
Slide 30: Myanmar
Myanmar Quarterly Trend (MMK bn) Revenue Revenue EBITDA EBITDA Margin EBITDA 38% +38 YTD - 22 YTD - 22 147 134 138 545 228 133 12% 101% yoy 100 yoy 49% 42% 44% QAR mn QAR mn 39% 25% 61 66 59 54 25 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed • Revenue year on year increased by 12% in H1 2022, of June
Slide 31: Maldives
Maldives Quarterly Trend (MVR mn) Revenue EBITDA EBITDA Margin Revenue EBITDA 10% +42 YTD - 22 YTD - 22 487 225 124 442 475 466 423 9% 15% yoy yoy 50% 55% 55% 49% QAR mn QAR mn 44% 267 257 212 218 209 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed 567 220 • Revenue increased by 9% yoy in H1 2022 support
Slide 32: Palestine
Palestine Quarterly Trend (USD mn) Revenue Revenue EBITDA EBITDA Margin EBITDA 4% YTD - 22 YTD - 22 +1 209 78 30 5% 28 27 29 29 11% yoy yoy QAR mn QAR mn 36% 38% 37% 38% 37% 10 11 10 11 11 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Mobile Fixed - • Revenue year on year increased by 5% in H1 2022 due to higher mo
Slide 33: Capital Markets Day 2022
Capital Our speakers: Markets Day 2022 Sheikh Mohammed Bin Abdulla Al Thani Aziz Aluthman Fakhroo Abdulla Ahmed Al Zaman Amer Sunna Andreas Glodau Join us on 26 September Bilal Nigel Thomas René Saim Vikram Kazmi Byrne Werner Yaksan Sinha Upgrade your portfolio! Ooredoo Q2 2022 Investor Presentation
Slide 34: Upcoming Conferences (tbc)
Upcoming Conferences (tbc) Ooredoo BofA EFG HSBC Capital Markets Day MENA 16th Annual One on Global Emerging 2022 Conference 2022 One Conference Markets Forum 26th September 2022 02-03 19-20 27 (Hopefully welcoming you IRL in Doha, September 2022 September 2022 September 2022 more details in due cou
Slide 35: OOoOreddo
OOoOreddo OOoredgodo
Slide 36: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional info Ooredoo Q2 2022 Investor Presentation | 28 July 2022 | 36
Slide 37: KPIs technology
KPIs technology 4G FDD Sites as % of total 4G Population 5G Population 4G Contribution in total Country Total Sites Total Data Volume GB Data Volume Grow % towers Coverage % coverage % traffic % ALGERIA 6,257 81.99% 75.60% n/a 453,416,466 78.14% 31.24% IRAQ 7,374 98.67% 96.52% n/a 165,166,043 79.38%
Slide 38: KPIs Commercial – H1 2022
KPIs Commercial – H1 2022 Country Churn Mobile Churn NPS Data users MyOoredoo Digital RMS (*) Number of Post paid as % Fixed (‘000) App users recharge complaints of total subs (‘000) per 1000 subs Algeria 2.9% - 29 7 ,170 51 95% 48.1% 0.6 9.0% Iraq 7.1% - 33 7,252 1,542 31% 55.6% 0.9 0.6% Kuwait 2.5
Slide 39: Blended ARPU
Blended ARPU Overview Results review Operations review Additional information Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 113 113 110 110 108 45.1 44.2 44.3 43.9 25.5 108 42.2 43.2 66.3 68.0 67.8 19.6 19.2 62.6 62.6 63.8 17.8 18.2 17.2 16.1 23.7 23.3 22.7 22.7 21.6 Kuwait (QAR)
Slide 40: Dividend policy
Overview Results review Operations review Additional information Dividend policy • The Ooredoo Board has approved a sustainable and progressive dividend policy for the company, aiming for a dividend payout in the range of 40% to 60% of normalized earnings • Dividend paid in 2022 was QR 0.30, ex-divi
Slide 41: OPCOs Licence General Information
OPCOs Licence General Information Overview Results review Operations review Additional information Fixed Licence Mobile Licence Country Issuance Date Expiry Date Issuance Date Expiry Date Qatar 7 October 2007 6 October 2032 7 October 2007 6 October 2027 13 October 1997 Kuwait -- -- Indefinite Emiri
Slide 42: Statutory Corporate Tax Rates
Statutory Corporate Tax Rates Overview Results review Operations review Additional information Statutory Statutory Losses LossesC/Fwd C/Fwd Markets Markets Notes Tax TaxRate Rate Allowed Allowed Algeria 26% 4 years The Tax Rate is 22% for tax year 2022 onwards Indonesia 22% 5 years Iraq 15% 5 years
Slide 43: Thank You
OOoOreddo Thank You OOoredgodo